RGT Pepper Market Report Week 43/ 2021

Vietnam after a back-to-back notching record high, mid-week 42 market was seen slowly reversing its course by about 1-2% from beginning week level trend.

 The pricing trend stood flat at level 88000 VND/kg reportedly the earning momentum week. This have finally urged most shippers to cover their needs particularly for White Pepper materials.

Though shippers were attempting to bid lower, as usual, no raw material was available for sale at a low level than the current market supporting price.

Hence, opening week 43, pricing tightens to level 88000-89000 VND with market still in a sleepy stretch with allegedly scarce availability of raw material.

This week market direction might have taken a reverse turn closing week October, nevertheless, overall, it can still be seen 4.5% higher average price trend compared to last month same period, while about 59% gain from last year same month period average pricing level.

Indonesia
Indonesia remains stable with Lampung staying at level $4350 FOB. The local currency Rupiah noted as South-east Asia’s best-performing currency since the beginning of September this year which is influencing country’s local commodities increased pricing.

The problem persists with reported issue in port congestion resulting to tight container and space availability alongside the reported overwhelming export of coal to China which have hit record highs.

Brazil
Still one of the best weeks for Brazil sellers as demand continue to pour in during the beginning of week 42. Though supportive levels are available, there are some who are still very firm with their offers at level $4200- 4300 FOB.

A more aggressive demand is expected opening week 43 as Europe reopens from their holiday last week.

Our Take-Away View
Vietnam Pepper elevated pricing these past few weeks could assimilate the near future event; taking into consideration the current reported stock positioning along with farmers bullish bias perspective that seems noticeably invincible. However, we should also take note that a smalltime correction will automatically be included in bull-favored journey. 


Freight Market Highlights
Asia to USA Freight Expected to Soften With a dip in demand for the most expensive destination ports it remains unclear if rates will continue to ease down, further reduce or even increase.

Though carriers continue to report that demand outlook remains bullish ending quarter alongside the existing port congestions. Asia To Europe Still at All Time High Extremely critical space condition with rates that remain at record high level.

Global Ports Facing Intense Congestion Port of Savannah known as home to the largest single terminal container facility of its kind in North America is reportedly at top with 81% congestion rate, while both LA and Long Beach had a combined congestion rate of 56%.

Overall, an estimated 77% of ports globally are experiencing port congestion heading to holiday season. 

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